Below than average rainfall spikes MGNREGA demand

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The number of people demanding work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has increased significantly during the monsoon season. However, during summer, the demand for work was slow. But, generally during summer, the demand is typically higher. According to experts, this year, due to irregular monsoon rains, rural laborers couldn’t engage in extensive farming, leading them to rely on MGNREGA for employment.

According to initial data collected by the Ministry of Rural Development, the number of people demanding work under MGNREGA in the June quarter saw a slight decrease. However, compared to the same period last year, the demand for work between July and October increased each month, ranging from 9.5% to 19.5% growth. The increasing demand for work has resulted in higher expenses under MGNREGA.

In the month of October, there was a 17.8% increase in the number of people demanding work, with 21.95 million people seeking employment during the month, as opposed to 18.64 million in October 2022. Similarly, in October, 18.38 million families demanded work, which is 18.3% more than the previous year. Experts believe that the increase in demand for work under MGNREGA signals various things. These suggest that the decline in sale of products by FMCG companies in rural areas and a decrease in non-durable production indicate that it will take some time for rural areas to recover in terms of consumption. Experts believe that job schemes like MGNREGA serve as useful tools to deal with any rural crisis.

It’s worth mentioning that in 2023, the country recorded below-average rainfall during the monsoon season. Experts believe that besides the irregular monsoon, a decline in industrial production has made a significant portion of the workforce dependent on the economy’s other sectors.